Westport Asset Management Inc. Purchases Shares of 7,500 Zscaler, Inc. $ZS

Key Points

• Westport Asset Management initiated a Zscaler position by purchasing 7,500 shares valued at approximately $1.06 million. Institutional investors and hedge funds collectively own 46.45% of Zscaler.
• Zscaler reported quarterly revenue of $850.48 million, up 25.4% year over year, and earnings of $1.08 per share, exceeding analyst expectations. Despite the growth, the company posted a negative net margin and remains highly valued.
• Analyst sentiment is broadly positive, with 34 Buy ratings, six Holds and one Sell, producing a “Moderate Buy” consensus and a $214.72 price target. However, several firms recently lowered targets, while insider selling and valuation concerns remain risks.

Westport Asset Management Inc. bought a new position in Zscaler, Inc. (NASDAQ:ZS - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 7,500 shares of the company's stock, valued at approximately $1,059,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ZS. Handelsbanken Fonder AB grew its holdings in Zscaler by 89.6% in the second quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company's stock valued at $8,601,000 after purchasing an additional 28,792 shares during the period. Assenagon Asset Management S.A. grew its holdings in shares of Zscaler by 6.6% during the second quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company's stock worth $27,284,000 after buying an additional 11,941 shares in the last quarter. Oxbow Advisors LLC purchased a new stake in Zscaler during the 4th quarter valued at about $2,939,000. Qsemble Capital Management LP grew its position in shares of Zscaler by 105.5% in the fourth quarter. Qsemble Capital Management LP now owns 15,773 shares of the company's stock valued at $3,548,000 after purchasing an additional 8,099 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in shares of Zscaler by 44.3% in the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company's stock worth $109,320,000 after acquiring an additional 239,326 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company's stock.

Zscaler Trading Down 0.6%

Shares of ZS stock opened at $184.60 on Thursday. The business's 50 day moving average is $149.08 and its two-hundred day moving average is $150.50. Zscaler, Inc. has a twelve month low of $114.63 and a twelve month high of $336.99. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $29.85 billion, a P/E ratio of -384.58, a price-to-earnings-growth ratio of 66.84 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.14 million. During the same period in the previous year, the company posted $0.84 EPS. Zscaler's revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Equities analysts forecast that Zscaler, Inc. will post 0.12 EPS for the current year.

Insiders Place Their Bets

In other Zscaler news, insider Robert Schlossman sold 3,146 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the transaction, the insider directly owned 69,366 shares of the company's stock, valued at approximately $8,769,943.38. This trade represents a 4.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the transaction, the chief executive officer directly owned 343,038 shares of the company's stock, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 16,269 shares of company stock worth $2,052,589. Insiders own 17.20% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on ZS. Piper Sandler cut their price target on shares of Zscaler from $185.00 to $160.00 and set a "neutral" rating for the company in a report on Wednesday, May 27th. Scotiabank reduced their price target on shares of Zscaler from $190.00 to $175.00 and set a "sector outperform" rating on the stock in a research report on Wednesday, May 27th. Morgan Stanley reduced their price objective on Zscaler from $155.00 to $145.00 and set an "equal weight" rating on the stock in a research note on Wednesday, May 27th. Canaccord Genuity Group reiterated a "buy" rating and issued a $210.00 price target on shares of Zscaler in a research note on Thursday, June 11th. Finally, Zacks Research raised Zscaler from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $214.72.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Multiple analysts raised their targets. Mizuho lifted its price target from $185 to $210 and upgraded Zscaler to Outperform. Stifel raised its target from $175 to $200 and assigned a Buy rating, while Cantor Fitzgerald reaffirmed its Overweight rating with a $225 target. These actions suggest analysts see meaningful upside from current levels. Benzinga analyst actions StreetInsider Cantor Fitzgerald commentary
• Positive Sentiment: Expanded Carahsoft partnership could broaden Zscaler’s customer reach. The companies are extending distribution of Zscaler’s Zero Trust Exchange to U.S. small and mid-sized businesses and the mid-market, potentially increasing channel access and future revenue opportunities. Zscaler and Carahsoft partnership announcement
• Positive Sentiment: Oppenheimer expects a modest fiscal fourth-quarter upside. The view supports expectations that Zscaler may slightly exceed quarterly results, though investors are also focused on the company’s forward outlook. Oppenheimer fiscal fourth-quarter outlook
• Neutral Sentiment: Analyst commentary remains broadly bullish, with Zscaler’s average brokerage recommendation equivalent to a Buy. However, the concentration of optimistic ratings may limit the impact of additional upgrades if expectations are already reflected in the stock. Zacks analyst recommendation analysis
• Negative Sentiment: Some analysis favors Okta over Zscaler because of Okta’s steadier growth, lower valuation and cross-selling opportunities. Zscaler’s high valuation and losses leave the stock more sensitive to any slowdown or disappointing guidance. Zscaler versus Okta analysis

Zscaler Company Profile

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.

Want to see what other hedge funds are holding ZS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Zscaler, Inc. (NASDAQ:ZS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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